U.S. House soundly rejects European Emissions Trading Scheme

The National Business Aviation Association today welcomed passage of bipartisan legislation prohibiting the implementation of a new carbon-trading regime for aircraft flying from the U.S. to the European Union.
The legislation, entitled "The European Emissions Trading Scheme Prohibition Act of 2011" (H.R. 2594), was passed overwhelmingly by the U.S. House of Representatives on Monday. The bill prohibits all U.S. airlines and general aviation flight operators from participating in the European Union Emissions Trading Scheme (EU-ETS) if it is unilaterally imposed on them. It also orders FAA Administrator Randy Babbitt to do all within his ability to ensure flight operators are not penalized by the program.
"We applaud the House of Representatives for passing this important measure, which sends a strong, unified signal to EU regulators that their planned Emissions Trading Scheme is unacceptable," NBAA President and CEO Ed Bolen said. "Global aviation standards are overseen by the International Civil Aviation Organization, and any new standards should be decided by ICAO."
Bolen's concerns were echoed in a letter NBAA and a number of other aviation organizations recently sent to House lawmakers strongly opposing the EU-ETS. The letter notes: "In September 2010, the International Civil Aviation Organization's (ICAO) Triennial Assembly agreed to an action plan to address aviation emissions, including efficiency targets and principles to govern future activities. In doing so, ICAO recognized that unilateral emissions schemes like the EU ETS undermine the need for a global solution for a global industry."
The EU-ETS program is slated to go into effect January 1, 2012. It charges a carbon tax on all aircraft operations overflying or landing in a European Union Country. Under the plan, the amount of tax to be paid by flight operators would depend on the type of aircraft and the total distance flown.
The legislation passed by the House yesterday was introduced earlier this year by House Transportation and Infrastructure Committee Chairman John L. Mica (R-7-FL), Full Committee Ranking Democrat Nick J. Rahall (D-3-WV), Aviation Subcommittee Chairman Tom Petri (R-6-WI), Aviation Subcommittee Ranking Democrat Jerry Costello (D-IL), Aviation Subcommittee Vice-Chair Chip Cravaack (R-8-MN), and other Members of the House. The bill passed the House by voice vote.